SHORT TERM: consolidation continues, DOW +26
Overnight the Asian markets gained 0.3%. Europe opened lower and lost 0.5%. US index futures were lower overnight. At 8:30 Housing starts were reported higher: 1189K v 1164K, and Building permits were reported higher: 1153K v 1138K. The market opened six points below yesterday’s SPX 2167 close, bounced to 2164, then declined to 2160 by 10am. After another rally attempt, this time to SPX 2165 just before 11am, the market declined a bit lower. At 1:30 the SPX hit 2159 for the last time and the market bounced to close at 2164.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.35%. Bonds gained 8 ticks, Crude slipped 45 cents, Gold rose $2, and the USD was higher. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Nothing on the economic calendar tomorrow.
The market opened lower today, bounced, and then remained in the same 13 point trading range it has been for the past four trading days. In fact, during the past five trading days the market has had four short term negative divergences and the most the market has pulled back is 13 points. Clearly there is a reluctance to sell into any declines. There is the possibility that the activity since the SPX 2169 high on Friday is all, or most, of a weak Minor 4th wave. We did see five waves up from SPX 2089-2169, then nothing but sideways choppy activity since then. Short term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum declined from yesterday’s slight negative divergence, ending with a slight positive divergence today. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend